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Who'll be buyer for 2B worth of tether?
by blackoil 3y ago
Who'll be buyer for 2B worth of tether?
- simmerup 3y agoNo one. But they don’t need a buyer to create Tether coins.
- joncrocks 3y agoBut if they want to buy Bitcoin with them there needs to be someone on the other side of the transaction.
- castalian 3y agoThe users of USDT are fine with this scheme (at least, they've been so far)
- simmerup 3y agoWhich is fine, as long as the Tethers aren’t turned into real money their value isn’t realised. They stay in the system and the charade goes on
- dandanua 3y agoIt could be pretty much the Germany police, directly or indirectly, since Tether proposes non volatile "currency" easily convertible with Bitcoin.
- bluecalm 3y agoBut the German police wants real money not Tether. There needs to be someone to offer it or BTC/USD will collapse.
- timmytokyo 3y agoThe exchanges and crypto trading firms take billions of Tether in the form of bitcoin-collateralized loans [1]. Alex Mashinsky, former CEO of the now-defunct Celsius Network, described how it works [2]: “If you give them enough collateral, liquid collateral, bitcoin, ethereum and so on ... they will mint tether against it,” he said. “New USDT is issued for such loans,” he added, and later destroyed when the loan is closed “so it does not permanently increase USDT in circulation”. If true, this contradicts Tether's claims that it only mints USDT in exchange for USD-backed treasuries. [1] https://www.dirtybubblemedia.com/p/examining-tethers-secret-loan-portfolio https://www.dirtybubblemedia.com/p/examining-tethers-secret-... [2] https://www.ft.com/content/0035016c-29ad-4e6f-9163-2a17df490aa5 https://www.ft.com/content/0035016c-29ad-4e6f-9163-2a17df490...